It can be hard in college to talk about a sensitive subject such as money. Our parents’ generation were told talking openly about money was rude. We’re taught never to ask how much a person makes or to comment about personal finances at all. A 2019 survey of 2,500 adults in the U.S. found that 57% purposefully avoid talking about money with their friends. With all this avoidance on the topic of money, many college-age students and young adults do not know how to approach conversing about finances. However, sometimes the subject cannot be avoided. Below are some tips on how to have a stress-free conversation about money.
1. Have a safe and judgment-free chat
This should be a no-brainer, but in order to start talking about money, you and your friends must have an understanding of respect for each other. Everyone has a different financial journey, as well as different boundaries. Don’t force a conversation that maybe isn’t right at the moment. By having an open mind, your friends will come to you when they feel ready.
2. Ask questions
Before assuming that a friend wants to eat out or go on a trip, ask questions. It can be uncomfortable for someone to cancel plans because the dinner or concert is not within a budget. The same goes for your own finances. Get more comfortable saying, “That’s not within my budget right now. How about…?” You might realize that your friends are not comfortable spending that much, either, but did not want to bring it up. If your question comes from a place of respect and understanding, then it won’t be “rude.”
3. Be honest
If you want to be more open when talking about money with your friends, lying will not get you far. Being honest about your boundaries and goals with money will lead to more profound respect and understanding between you and your friends. Have a big purchase you’re saving up for? Telling your friends about it allows them to help keep you accountable with your spending and saving habits. It also goes the other way. Don’t be afraid to Venmo request a friend if you covered lunch one day. By being honest about your money goals, you’ll be much more comfortable in your fiscal conversations.
4. Avoid comparison
Everyone has a different situation. Some people may be paying for college themselves by working, others may be taking out student loans and some people have parents
who are able to finance their degree. And that kid from your introduction to business class may brag about having a Roth IRA since he was 15, and that’s OK. Everyone is in a different place in their financial journey. Part of the reason why most people do not talk about money is the fear of comparison and being judged. By establishing a standard of avoiding comparisons, you and your friends won’t feel as if you have to tiptoe around more serious topics.
A perk of opening up to your friends about money is that they might be a great resource for all your money questions! If you’re confused about budgeting, ways to save and investment options, asking your friends may just provide you with some beneficial advice.
So next time the subject of money comes up, don’t just make a sly joke and move past it. If you and your friends decide to be more open and talk about money, it may just build stronger relationships and trust.
If you have any questions about money, budgeting, credit cards or student loans be sure to read this article from MoneyGeek. For tips on managing money in college, check out this article from Forbes.com.